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Livent (LTHM) Dips More Than Broader Markets: What You Should Know

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Livent (LTHM - Free Report) closed at $23.73 in the latest trading session, marking a -1.94% move from the prior day. This move lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the supplier of performance lithium compounds had lost 15.44% in the past month. In that same time, the Basic Materials sector gained 6.68%, while the S&P 500 gained 3.67%.

Livent will be looking to display strength as it nears its next earnings release. In that report, analysts expect Livent to post earnings of $0.06 per share. This would mark year-over-year growth of 400%. Our most recent consensus estimate is calling for quarterly revenue of $105.45 million, up 28.28% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Livent. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.51% higher. Livent currently has a Zacks Rank of #3 (Hold).

Investors should also note Livent's current valuation metrics, including its Forward P/E ratio of 59.02. This valuation marks a premium compared to its industry's average Forward P/E of 17.74.

Investors should also note that LTHM has a PEG ratio of 1.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Chemical - Specialty industry currently had an average PEG ratio of 1.01 as of yesterday's close.

The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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